Independent pharmacies finding a niche

THE ISSUE: Independent pharmacists say they are able to succeed by finding niches and offering a personal approach to care.

THE IMPACT: Hundreds of independent pharmacies have closed statewide over the past few decades, but the numbers have slowly started to rebound recently.

Gerry Tuoti Wicked Local Newsbank Editor

When pharmacist Paul Hackett’s father bought the Olden’s Pharmacy in 1971, the Weymouth business was one of an estimated 2,500 independent pharmacies in Massachusetts.

Today, as large chains have expanded to dominate the industry, Olden’s is one of just 166 independent pharmacies statewide, according to data provided by the Department of Public Health.

“I am concerned about independent pharmacies,” said Hackett, now a co-owner of Olden’s Pharmacy. “I think the independents that are left are doing a good job. They just need a level playing field as far as the insurance companies go.”

After hundreds of independent pharmacies closed their doors or got bought out over the past few decades, some see signs that independent pharmacies could be slowly making a comeback. In fact, the number of independent pharmacies licensed in Massachusetts has actually grown slightly in recent years, said Todd Brown, executive director of the Massachusetts Independent Pharmacists Association.

“While a few have closed, a number have opened,” Brown said. “We’ve been averaging a 2-3 percent increase in independent pharmacies yearly over the past couple of years.”

One factor, he said, is that since the Affordable Care Act was implemented, more people have insurance and are therefore able to afford prescription medication. Another factor, he said, is the power of old-fashioned customer service.

“People think independent pharmacies can’t compete, are basically a dinosaur and are heading for disaster,” Brown said. “That’s actually not true. They can compete against chain pharmacies as long as they’re given an opportunity to do so.”

One challenge is that large chain pharmacies often hold an advantage in dealing with pharmacy benefit managers, third-party entities that contract with insurance companies to handle the prescription component for many health plans. CVS Caremark and Express Scripts are the two largest PBMs.

PBMs handle prescription billing and negotiate reimbursement rates with pharmacies. They often require patients on long-term medication use a mail-order service to fill their prescriptions in bulk.

Village Pharmacy owner Elliot Strasnick, who has been at the Marblehead pharmacy for 47 years, said customer service is something that sets independent pharmacies apart.

It’s common for independent pharmacists to get to personally know generations of families who come in as patients. In independent pharmacies, it’s not unusual for the owner of the business to work the counter, filling prescriptions and helping patients.

“The individual, personal attention is what keeps people coming back,” he said. “When you deal with the people who run the business, you’re going to get taken care of.”

Niches in the business are another way independent pharmacists can separate themselves, Strasnick said. Village Pharmacy, for example, offers personalized multi-dose packaging that helps patients manage their medication schedules.

Olden’s Pharmacy in Weymouth offers specialized packaging and home delivery to patients in four communities. The pharmacy also carries medical devices and home healthcare equipment, such as walkers, bath safety products and wheelchairs.

“Customers have been coming here for 20, 30, 40 years or longer,” Hackett said. “We get to know families and their medical condition. That counts for a lot.”